The large drop in demand for a housing loan is a textbook reaction of the market to a series of sharp increases in interest rates that began in October’21 and causes a decline in home sales. The period of dynamic increases in housing prices is ending and it is possible to correct them in the coming year. At the same time, a strong increase in construction costs, with no possibility of further price increases, will limit the new supply.
In 1q22, the increase in transaction prices of flats on the primary market in all voivodship capitals (except Warsaw) slowed down compared to 4q21, but reached 19% y / y. On the secondary market, the price dynamics was lower; The increase in the prices of flats in the largest agglomerations in 1q22 slowed down compared to 4q21, the prices of flats in smaller capitals of voivodships continued to rise.